The EIA reported the draw for the week ending October 9, dwarfing analyst expectations of a mere 288,000 barrel decline. While commercial crude inventories now sit at 415.6 million barrels—roughly 3% above the five-year average—the sheer scale of the depletion caught traders off guard, fueling a aggressive buying cycle. November WTI contracts reached $97.58 by Thursday night, trading within a wide range of $89.61 to $98.32.
WTI Rallies Past Brent on Unexpected U.S. Inventory Drop
A sharp 8.6 million barrel withdrawal from U.S. crude stockpiles has pushed WTI futures to a 6.46% weekly gain, outperforming Brent as markets navigate a volatile landscape of tanker attacks near the Strait of Hormuz and ongoing strikes against Russian energy infrastructure.
Brent crude struggled to maintain similar momentum, hovering near $106 per barrel as the market balanced geopolitical risk premiums against the reality of emergency stock releases. Internal demand metrics remain mixed; while distillate stocks fell by 2.5 million barrels to sit 12% below the five-year average, gasoline inventories climbed by 3.5 million barrels. This partial build in gasoline prevented a total supply-side squeeze, yet it failed to dampen the broader bullish sentiment surrounding U.S. domestic supply tightness.
Comments (0)
No comments yet. Be the first!